A Look at Stress Tests

A stress test in which financial institutions must meet a minimum 8% capital-to-asset standard, and provides valuations of loans and assets based on call report data and the latest market conditions, provides the most "realistic" insights into bank and credit union stability, according to Mike Moebs, economist and CEO of Moebs $ervices. This is discussed in the story, above. However, his company has also run three other stress test scenarios using different capital standards and valuations of loans and assets.

Processing Content

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER
Load More